Category: Free And Clear

Foreclosure laws vary from state to state, and some states are more in support of lenders than others.

In Texas for example, the time frame for filing a Notice of Trustee Sale is only 21 days prior to the sale, and this is the first public record filing in a non-judicial foreclosure required in Texas.

So also, in Texas the lender is generally not required to “produce the note” in order to show that its claim is legitimate and it has a right to foreclose.

I found this interesting opinion by a Texas law firm who apparently markets its services to lenders who are being challenged by borrowers demands to “produce the note“.

My comment is this:

The “produce the note” strategy is only the surface effect of a much deeper running concern.

Typically, a lender or loan servicer produces photocopies of paperwork that

1. Does NOT mention the lender or loan servicer in any principal role,

2. Does NOT link the lender or loan servicer to a principal role of the note,

3. Does NOT show that the lender or loan servicer is authorized by a principal of the note.

Since the original note has real value as a negotiable instrument in exchange for full payoff, accepting copies of the original is like taking the copy of a personal check that’s executed by someone else.

Nobody in their right mind would do that if they fully understood the procedure – not even in Texas.

Please let me know your opinion or if you’ve had any experiences or challenges that are related.

One of the most frequently asked questions is “Will It Work For Me?” I get this question a lot (not only about Richard Roop’s Fre and Clear Cash Machine…) Get the Best Webinar Bonus for Richard Roop’s Free and Clear Cash Machine here!

Free and Clear real estate systems have been around in the infomercial and real estate information world for a very long time.

Carlton Sheets, one of the grand masters of creative real estate investing courses was one of the first educators to tap the Free and Clear slogan.

Most recently John Beck has ramped up his late night infomercial presence with a “Free and Clear” system that suggests one could buy real estate at tax sales for as little as a few hundred Dollars.

And Richard Roop, master marketer from the school of direct marketing king Dan Kennedy, is about to drop a bomb on the “Free and Clear” market with a mega internet launch of his system.

“So, what’s the confusion? Does Free and Clear Investing work? And why are there so many complains about John Beck’s course on review and “Free and Clear Scam” web sites?”

Myth #1: You Will Own the House Free and Clear

This myth is fueled by slogans like “…using none of your own cash or credit.”

In truth, “Free and Clear” typically refers to a home owner or seller who owns the house without any liens or loans against it. These types of sellers are the target of direct response campaigns in most Free and Clear systems.

John Beck’s marketing material leaves the impression that you can buy houses at tax sales or auctions for as little as a few hundred bucks – and actually own them “Free and Clear”.

Myth #2: You Don’t Need Any Money to Buy Free and Clear Houses

The truth is that deals with Free and Clear houses often come with the opportunity of seller financing, where the seller defers all or most of the purchase price until later. And free and clear courses otherwise teach you ways to find private investors to put up the cash that the seller needs right now.

Myth #3: It’s a Scam. Free and Clear System Don’t Work!

This myth is fueled by mostly anonymous material on web sites and articles trashing Free and Clear systems like John Beck.

The truth is that owners of Free and Clear homes can be a very lucrative target in any real estate market.

As with many other real estate courses, it is crucial that the user follow the steps and implement what the system teaches. Following the steps typically entails some form of “prospecting”, meaning you will have to look for the (relatively few) motivated sellers who will be willing to do a deal that can benefit YOU as well as them.

Keep in mind that most so called “review” or “scam” sites on the internet have a hidden agenda of siphoning of traffic and good-will from famous products for the purpose of selling their own courses or other information products or services that these review sites are affiliated with.

With a bit of research we found that in 2005 approximately 33% of all owner occupied homes were owned free and clear. (See pdf from US census)

Another source, dating 2001 puts it even higher – at 40% (yahoo answers)

Since this is a very significant portion of real estate, it looks like free and clear homes would be a great sub-niche to target with marketing. You can learn how to target free and clear home owners specifically with direct marketing campaigns.

“How can I find and reach free-and-clear home owners?”

The best way to find and reach free-and-clear home owners would by getting lists either from a list broker or (with some limitations) from a title company resource.